Working Paper

The Political Economics of the Arab Spring

Roland Hodler
CESifo, Munich, 2012

CESifo Working Paper No. 4023

The Arab Spring has led to very different outcomes across the Arab world. I present a highly stylized model of the Arab Spring to better understand these differences. In this model, dictators from the ethnic or religious majority group concede power if their country is oil-poor, but can stay in power by bribing the people if their country is oil-rich. Dictators from the minority group often rely on other members of their group to repress protests and to fight the majority group if necessary. These predictions are consistent with observed outcomes in Egypt, Libya, Saudi Arabia, Syria, Tunisia, and elsewhere.

CESifo Category
Public Choice
Public Finance
Keywords: Arab Spring, political transitions, repression, civil conflict, oil, divided societies
JEL Classification: D720, D740